60.1K

Verified Solution

Link Copied!

Levy \& Levy, CPAs have been the auditors of Ace Mfg. Co. for many years. Ace is a publicly held company whose financial statements are filed with the Securities and Exchange Commission. John Carlson, president and CEO of First State Bank, is a member of the Ace board of directors; this is his only connection with Ace. Carlson has asked Levy \& Levy to prepare his and his spouse's income tax returns. Mai Scribner, CFO of Ace, has also asked Levy \& Levy to prepare her income tax returns.Under the Public Company Accounting Oversight Board rules, which of the following is CORRECT? Levy \& Levy preparing the income tax returns for Carlson will not cause them to lose their independence with Ace, but preparing the income tax returns for Mai Scribner would cause Levy \& Levy to lose their independence with Ace. Levy \& Levy, CPAs preparing income tax returns for John Carlson and for Mai Scribner would not causo Levy \& Levy, CPAS to lose their independence with Ace Mfg. Co. If Levy \& Levy, CPAs prepares the income tax returns for John Carlson, they will not be independent of Ace Mig. Co. Similarly, preparing the income tax returns for Mai Scribner would causo Levy \& Levy, CPAs to be not independent of Ace Mig. Co. II Levy \& Levy, CPAs prepares the income tax returns for John Carlson, they will not be independent of Ace Mig. Co, However, preparing the income tax returns for Mai Scriber would not cause Levy \& Levy, CPAs to lose their independence with Ace Mfg. Co

Answer & Explanation Solved by verified expert

See Answer